The Impact of Mergers and Acquisitions on Acquirers’ Stock Returns: Evidence from Türkiye

This study investigates investors’ reactions to domestic merger and acquisition (M&A) announcements in Türkiye between 2016 and 2023. The study analyses investor reactions using the event study method. The analysis encompasses 91 domestic acquisition announcements. The acquirers' abnormal returns are calculated using the market model and evaluated using a comprehensive set of test statistics. The analysis results indicate that abnormal returns are generally positive and significant before the M&A announcement date. Nevertheless, this effect does not persist after the first announcement date. These findings provide evidence for the hypothesis that the markets are not semi-efficient.